There are two notable market updates for the month: Firstly, real estate prices increased for the first time after six months of declines, and secondly, a 20% provincial home-flipping tax was introduced.
The cumulative effects of capping rental increases to the rate of inflation (effectively rent control), restrictions on short-term rentals, taxes associated with the empty homes tax, and most recently, adding a home-flipping tax will effectively make investment properties less attractive and more likely to decrease the rental pool in the future. This issue will be further exacerbated by the national ban on foreign home ownership set for 2027, whereby newly arrived Canadians will compete for the same rental homes.
Here's the summary for February:
13.5% ↑ in sales since February 2023
23.3% ↓ below the 10-year February sales average
16.3% ↑ in listed properties compared to February 2023
3.0% ↑ above the 10-year February listings average
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,183,300. This represents a 4.5% increase from February 2023 and a 1.9% increase compared to January 2024.
